Car finance-does it have to be in drivers name

dori2o

I'm slowly building up my credit rating but it's taking time.

I've tried 2 car lease companies and been refused by both.

Were now looking at HP, but are wondering if it can be put in my wife's name rather than mine, or a joint policy.

My wife has a very good credit rating. Not quite excellent but not far off.

We desperately need a new car. I've been buying 2nd hand cars at an average age of 8 to 10 years old now for the last 18 years, but as my mobility is getting worse we now need a car which is going to be much more reliable.

I know we can't do a lease in her name if she's not the driver (she doesn't drive yet, but this is going to change and that's why I'm targeting a particular car), however, is this the same with HP?

We are looking at a Peugeot 108 Allure or better.

It gives us what we need given all we do is drive to/from work.

We only have 1 child now who is 17 so we don't need a larger car to deal with kids.

My wife is barely 5ft tall and cannot see over the bonnet of our current car (Citroen C4 VTR 2005). The 108 with its low drooping short bonnet should make it better for her to drive.

Can anyone confirm if we can set up HP on a new/nearly new (upto 12months old and less than 5,000 miles) car in my wife's name.? Thanks.

wgl2014

You need to check the individual terms of any finance agreement.

Have you considered a nearly new car via an unsecured loan? Could work out a fair bit cheaper and no restrictions on driver or owner.

dori2o

wgl2014 wrote: »

You need to check the individual terms of any finance agreement.

Have you considered a nearly new car via an unsecured loan? Could work out a fair bit cheaper and no restrictions on driver or owner.

It's one of the options we are looking at.

The annoying thing is the last finance company to refuse me would only look at my salary based on the last 3 months, and said it was partly due to my monthly pay why they refused, but I've just been promoted and I'm going to be earning around £7000 a year more (approx £380 a month more plus allowances) from next the end of this month (end of November).

But they were not interested in that at all.

forgotmyname

Low drooping bonnet may actually be worse, wont be able to see where the car ends. A good old 70's square box maybe best. You eat your beans from most of those these days though.

Should be no problem with her getting the finance but she will need to be the owner and maybe required to be the insurance policyholder as well.

So you need to factor in insurance issues also.

fatrab

I've bought 2 cars in the past 5 years that were financed to me but registered (and insured) in my wife's name so yes, it can be done.

But I'd agree as above, unless you are being offered very competitive HP rates of interest, a low rate loan would be a far better option.

ratrace

https://www.ebay.co.uk/itm/Peugeot-108-Active-1-0-petrol-5-doors-low-mileage/283232846357?hash=item41f1fe4215:g:iH8AAOSwhJFb1dIN:rk:5:pf:0



why not buy something like this low miles and a fair price and still own the car in the end £3500/36= £97 a month im sure you could get a loan for that or maybe a 0% credit card

DoaM

https://www.ebay.co.uk/itm/Peugeot-108-Active-1-0-petrol-5-doors-low-mileage/283232846357

Same link but without all the spurious, weird additions. (The original still works - it just looks weird).

forgotmyname

or an even shorter url/link

https://ebay.co.uk/itm/283232846357

ratrace

DoaM wrote: »

https://www.ebay.co.uk/itm/Peugeot-108-Active-1-0-petrol-5-doors-low-mileage/283232846357

Same link but without all the spurious, weird additions. (The original still works - it just looks weird).

Lol, the result of being lazy and just copying and paste... :rotfl:

dori2o

Thanks for the replies.

We've managed to find a car and finance which suits our needs.

Car will be financed in wife's name with the terms and conditions stating she must either be comprehensively insured as the main driver, or as a named driver.

She will have to be registered keeper and will be shown as owner.

We (rather She) got a pretty good deal fwiw with Barclays.

4.1% over 4 years with £0 deposit. The car will be completely paid off at the end of the finance term instead of the usual lump sum remaining. Cost of car and extra's is £7650ish and we'll pay £9200ish over the term.

Checked the insurance, no problems, the difference between me being named owner/keeper and main driver with her as named driver , and her being named owner and keeper with me being main driver with her as named driver is a huge amount of £1.23 per month.

She's just emailed her proof of ID docs and with any luck we'll have our new car delivered to our door by the end of the week.

We've gone for a Peugeot 108 PureTech Allure 5 Dr. Registered Sept 2017, with less than 4000 miles on the clock, plus the Manufacturers warranty carries forward, and we can extend it directly with Peugeot.

The car has been used as a Demonstrator and is coming from a Peugeot dealership. It was serviced at 1000 miles and will be serviced prior to delivery. Condition is immaculate.

So far so good.

It means I now have 4 years to improve my credit rating then in 4 years time when the car is paid off she has agreed to transfer the car title into my name. That way I can use it as part ex on a brand new car.

Just not sure how to improve my credit other than paying all my bills on time.

The credit cards that caused my problems which I have a payment plan in place for will both be paid off in the next 14 months, if not earlier.

Now my salary is going up £7000 following my promotion that will hopefully make a difference.